LPG can provide shipping with an immediately available lower-emission fuel option, backed by more than 1,600 LPG carriers in operation and a global supply chain of more than 1,000 storage facilities and terminals, according to Lloyd’s Register.
The updated Fuel for Thought: LPG report, produced by Lloyd’s Register with the World Liquid Gas Association, says fossil LPG emits around 97% less sulphur oxides, 90% less particulate matter and about 20% less carbon dioxide than heavy fuel oil.
Lifecycle greenhouse gas emissions can be reduced by up to 17% compared with marine gas oil, while renewable LPG and bio-LPG could cut emissions by up to 80%, depending on feedstock.
The report says LPG’s lower carbon-to-hydrogen ratio can help shipowners improve compliance with EEXI, CII, EU ETS and FuelEU Maritime.
Dual-fuel LPG propulsion is already established in the gas carrier segment, with a growing LPG-fuelled fleet and a strong orderbook.
The report says wider use across container ships, bulk carriers and other vessel types remains possible because gas carriers account for only a small share of global shipping emissions.
LR and WLGA also identify lower capital expenditure than other alternative fuel solutions, competitive fuel pricing in key regions and retrofit options for a significant number of existing vessel types as commercial drivers for adoption.
Global seaborne LPG trade reached a record 145m tonnes in 2025 and is expected to keep growing. Around 500 LPG terminals worldwide could potentially serve as bunkering points for non-gas carriers with minimal new investment.
The report says LPG could also be combined with onboard carbon capture systems to cut carbon pricing exposure and reduce onboard CO2 storage requirements.
But it warns that barriers remain, including an incomplete regulatory framework for LPG bunkering and engine options that are not yet fully mature, particularly beyond two-stroke applications.
“Our latest Fuel for Thought: LPG report reinforces what our industry has long needed — an immediately deployable, commercially viable and technically proven cross-segment pathway to accelerate decarbonisation,” said Constantinos Chaelis, global gas segment director at Lloyd’s Register.
Nikos Xydas, technical director at WLGA, said LPG had become “one of the most widely adopted alternative marine fuels globally in the gas carriers segment”.
Lloyd’s Register is a maritime classification society and professional services organisation providing technical assurance, compliance and advisory services to the shipping and offshore sectors.
The World Liquid Gas Association is an international industry association representing companies and organisations across the LPG value chain.